cbdMD Reports Preliminary Fourth Quarter and Fiscal 2020 Results
October 14 2020 - 9:00AM
Business Wire
Year Over Year Net Sales Expected to
Increase Between 76% and 77%
Year Over Year Quarterly Net Sales Expected
to Increase Between 21% and 23%
Company Reaffirms Commitment To Reaching
Positive Adjusted Operating Income In Calendar 2020
cbdMD, Inc. (NYSE American: YCBD, YCBD PR A) (the “Company”),
one of the leading, highly trusted, and most recognized cannabidiol
(CBD) brands, today reported the following preliminary financial
results for the fourth quarter of fiscal 2020 and the year ended
September 30, 2020.
- Net sales revenue for fiscal 2020 is expected to range between
$41.7 and $41.8 compared to $23.7 million in fiscal 2019.
- Net sales revenue for the fourth quarter of fiscal 2020 is
expected to range between $11.5 and $11.7 million compared to $9.54
million in the fourth quarter of fiscal 2019.
“cbdMD continues to generate outstanding sales growth while
reaffirming its commitment to reaching positive adjusted operating
income during calendar 2020. Our direct to consumer (DTC) net sales
channel is performing very strong and we expect to report an
increase between 71% and 72% of net sales from 62.5% in fiscal
2019. As we look ahead into 2021, we expect the CBD industry to
grow appreciably. We believe that this moment in time represents a
singular investment opportunity. Nationally recognized brands, such
as cbdMD and PawCBD, will likely capture significant market share
as the industry consolidates. Anticipated regulation is expected to
reduce competition while creating barriers to entry for new
entrants. We believe that now is the time to capitalize on this
opportunity. cbdMD has been a brand leader in marketing, product
innovation and customer service and we expect to continue to gain
more market share and achieve additional growth into 2021,” said
Martin Sumichrast, Chairman and co-CEO of cbdMD, Inc.
About cbdMD, Inc.
cbdMD, Inc. is a nationally recognized consumer cannabidiol
(CBD) brand whose current products include CBD tinctures, CBD
capsules, CBD gummies, CBD topicals, CBD bath bombs, and CBD pet
products. cbdMD is also a proud partner of Bellator MMA and Life
Time, Inc., and has one of the largest rosters of professional
sports athletes who are part of “Team cbdMD.” To learn more about
cbdMD and our comprehensive line of over 100 SKUs of U.S. produced,
non-THC1 CBD products, please visit www.cbdMD.com, follow cbdMD on Instagram and
Facebook, or visit one of the 6,000 retail outlets that carry cbdMD
products.
1 Non-THC is defined as below the level of detection using
validated scientific analytical tools.
Note About Preliminary Results
The preliminary unaudited financial results presented in this
release are preliminary and may change. The preliminary unaudited
financial information includes calculations or figures that have
been prepared internally by management and have not been reviewed
or audited by our independent registered public accounting firm.
There can be no assurance that cbdMD, Inc.'s actual results for the
periods presented herein will not differ from the preliminary
unaudited financial data presented herein, and such changes could
be material. This preliminary unaudited financial data should not
be viewed as a substitute for full audited consolidated financial
statements prepared in accordance with GAAP and is not necessarily
indicative of the results to be achieved for any future period. Our
audited consolidated financial statements for the fiscal year ended
September 30, 2020 will be contained in our Annual Report on Form
10-K to be filed with the Securities and Exchange Commission on or
before December 29, 2020.
Forward-Looking Statements
This press release contains certain forward-looking statements
that are based upon current expectations and involve certain risks
and uncertainties within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements can
be identified by the use of words such as ''should,'' ''may,''
''intends,'' ''anticipates,'' ''believes,'' ''estimates,''
''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and
''proposes.'' These forward-looking statements are not guarantees
of future performance and are subject to risks, uncertainties, and
other factors, some of which are beyond our control and difficult
to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements,
including, without limitation, statements made with respect to the
expansion of the consumer market for CBD products and our ability
to increase our market share, challenges related to the impact of
the COVID-19 environment, our limited operating history, our
ability to expand our business and significantly increase our net
sales, our ability to effectively leverage our brand partnerships
and sponsorships, our ability to effectively compete in our market,
and our ability to report profitable operations in the future. You
are urged to carefully review and consider any cautionary
statements and other disclosures, including the statements made
under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on
Form 10-K for the fiscal year ended September 30, 2019, as amended,
and our Quarterly Report on Form 10-Q for the period ended June 30,
2020, both as filed with the Securities and Exchange Commission
(the "SEC") and our other filings with the SEC. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements, many of which are generally outside the
control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc.
does not undertake any duty to update any forward-looking
statements except as may be required by law. The information which
appears on our websites and our social media platforms, including,
but not limited to, Instagram and Facebook, is not part of this
press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20201014005142/en/
John Weston Director of Investor Relations john.weston@cbdmd.com
704-249-9515
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